Press ReleasesNippon Paper Group Announces Response to Summer Power Shortages— Supplying Electricity to Power Companies Through the Full Utilization In-house Power Generating Facilities —

May. 09, 2011

Nippon Paper Group, Inc.

Nippon Paper Group, Inc. (President: Yoshio Haga) today announced that it will work to decrease purchased electricity, as detailed below in response to expected summer power shortages in the areas served by Tokyo Electric Power Company and Tohoku Electric Power due to the East Japan Great Earthquake.

1.Achieving a 25% Reduction in Purchased PowerThe Nippon Paper Group will decrease purchased electricity through the full operation of in-house power generating facilities at the main mills of key Group companies Nippon Paper Industries Co., Ltd. (President: Yoshio Haga) and Nippon Daishowa Paperboard Co., Ltd. (President: Hironori Iwase). Doing so will enable a 25% year-on-year reduction of peak purchased electricity across the entire Group.

2.Considering the Supply of ElectricityIn response to requests from Tokyo Electric Power Company, Incorporated and Tohoku Electric Power Co., Inc. to be supplied electricity, the Nippon Paper Group is considering the transmission of electricity to the two utilities by supplying surplus electricity after the full operation of its in-house power generating facilities as well as by resuming the operation of idled power generating facilities. Details including the starting time, duration and volume of electricity to be supplied will be determined through future talks with the two utilities.

Sites Serviced by Tokyo Electric Power Company

Sites Serviced by Tohoku Electric Power

Nippon Daishowa Paperboard Soka Mill(Soka-shi, Saitama)

Nippon Daishowa Paperboard Yoshinaga Mill(Fuji-shi, Shizuoka)

Nippon Paper Industries Iwanuma Mill(Iwanuma-shi, Miyagi)

Nippon Paper Industries Nakoso Mill(Iwaki-shi, Fukushima)

Nippon Daishowa Paperboard Akita Mill(Akita-shi, Akita)

The overall supply of between 80,000 and 100,000 kilowatts is under consideration.

Note that the supply of electricity will also be possible at the Nippon Paper Industries Ishinomaki Mill (Ishinomaki-shi, Miyagi) following its restoration, and we will respond as needed in this regard.